Bank assists impoverished households to escape poverty

As much as 1.24 million impoverished households and policy beneficiaries in Hanoi have accessed capital from the Vietnam Bank for Social Policies (VBSP) over the past 12 years, given a combined loan value of over 14 trillion VND (658 million USD).

Of the total, 515,000 impoverished households received 18.5 million VND each.

The capital helped 160,000 households rise out of poverty and created jobs for 430,000 locals, said Nguyen Kim Phung, Director of the Hanoi VBSP branch during a working session with prominent Hanoi leaders recently.

Meanwhile, 138,000 students have also benefited from VBSP loans and 7,200 houses were built, she said.

Last year, the Hanoi branch offered loans to 120,000 households, including 17,000 disadvantaged and 11,000 students.

The branch also generated jobs for 30,000 locals, upgraded 60,000 clean water facilities, and contributed to reducing impoverished household ratio to 1.91 percent in 2014 from 2.66 percent in 2013.

According to Phung, the branch targets 8 percent growth in 2015 and as much as a 10 percent growth in 2020.

However, VBSP General Director Duong Quyet Thang held that loans for impoverished households remains low, limiting their socio-economic development and ability to rise out of poverty.

Chairman of the Hanoi People’s Committee Nguyen The Thao proposed that the Hanoi VBSP branch should diversify its capital resources and step up administrative reform to improve access to capital.-VNA